A loan is a trade: predictable monthly payments in exchange for interest cost over time. This calculator shows both the monthly payment and the long-run interest so you can choose a term that fits your budget and your total-cost goals.
Loan Calculator
Calculate monthly payments for auto, personal, student, and home equity loans
Monthly Payment:$477.53
★ Rate this calculator:
Total Interest:$3651.74
Total Cost:$28651.74
Formula used in this calculation
M = P[r(1+r)^n] / [(1+r)^n-1] | Total Interest = (M × n) - P
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How this calculation works
According to standard financial formulas, your monthly loan payment is calculated using the same amortization formula as mortgages. The total interest paid over the life of the loan is the difference between total payments made and the original principal.
M = P[r(1+r)^n] / [(1+r)^n-1] | Total Interest = (M × n) - P
How interest rate affects your payment
Rate
Monthly P&I ($380k, 30yr)
Total Interest Paid
5.5%
$2,158
$397,000
6.0%
$2,279
$440,000
6.41%
$2,374
$474,000
6.82%
$2,478
$512,000
7.5%
$2,657
$576,000
A 1% rate difference on a $380,000 mortgage costs approximately $60,000 more over 30 years.
A loan calculator is a tool that computes monthly payment, total interest, and payoff date for installment loans using principal, APR, and term.
How to Calculate Loan Payment
Enter the loan amount (principal)
Input the annual interest rate (APR)
Choose the loan term in months or years
Add any extra monthly payment to see payoff acceleration
Review monthly payment and total interest
The Loan Payment Formula
M = P[r(1+r)^n]/[(1+r)^n-1] with P=principal, r=APR/12, n=months
Where: symbols follow the inputs and conventions used in this calculator (principal, rates, terms, or units as labeled).
Real-World Example
A $15,000 loan at 12% APR for 5 years costs about $333/month and $5,000 in total interest.
Quick Reference
How to calculate Loan Payment?
Enter the loan amount (principal) Input the annual interest rate (APR) Choose the loan term in months or years Add any extra monthly payment to see payoff acceleration Review monthly payment and total interest
What is the formula for Loan Payment?
M = P[r(1+r)^n]/[(1+r)^n-1] with P=principal, r=APR/12, n=months
Can you give a real-world Loan Payment example?
A $15,000 loan at 12% APR for 5 years costs about $333/month and $5,000 in total interest.
📊 Did You Know?
The average personal loan APR in March 2026 is 12.26% for a 700 FICO score borrower (Bankrate, March 2026). The average personal loan balance is $11,699 (LendingTree, Q4 2025).
How to Use This Calculator
Enter the amount you want to borrow (principal).
Enter APR and term length to compute the monthly payment.
Compare total interest across terms to see the true cost of “lower monthly” options.
The Formula Explained
Monthly Payment = P[r(1+r)^n] / [(1+r)^n - 1]
This is standard amortization math for fixed-payment loans. Early payments include more interest; later payments include more principal. That’s why shortening term can cut total interest dramatically.
Tips & What Your Results Mean
The monthly payment answers “can I afford this?” but total interest answers “is this worth it?” If you’re choosing between a 36-month and 60-month loan, the longer term may look easier monthly but can be much more expensive overall.
For debt consolidation, compare your current effective APR (or blended APR across debts) to the new loan APR. Consolidation works best when APR drops and you avoid re-borrowing on the paid-off balances.
Use a buffer APR when planning. If your pre-approval is 11% but you might end up at 13%, test both. The difference can be meaningful on multi-year terms.
If you can afford a small extra payment each month, try it. Extra principal reduces future interest and often improves payoff speed more than people expect.
Frequently Asked Questions
What is the average personal loan APR in 2026?
A useful reference point is about 12.26% APR for a 700 FICO borrower (Bankrate, March 2026). Your actual APR depends on credit score, income, and lender.
What is the average personal loan balance?
A commonly cited figure is $11,699 as of Q4 2025 (LendingTree, Q4 2025). Use this as context for “typical” loan sizing, but base decisions on your own cash flow.
Should I choose the lowest monthly payment?
Not always. Longer terms reduce monthly payment but can substantially increase total interest. Compare total cost, not just the monthly number.
How do extra payments affect payoff?
Extra payments reduce principal faster, which reduces future interest. Even small extra monthly amounts can shorten the term and lower total interest meaningfully.
What’s the loan payment formula?
Monthly Payment = P[r(1+r)^n] / [(1+r)^n - 1], where P is principal, r is monthly rate, and n is number of payments.
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